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IMF urges pact to boost its resource quota, strengthen world economy

Published 09/10/2023, 05:09 AM
Updated 09/10/2023, 05:10 AM
© Reuters. Kristalina Georgieva, Managing Director of the International Monetary Fund, arrives to attend a G20 Finance Ministers' and Central Bank governors' meeting at Gandhinagar, India, July 18, 2023. REUTERS/Amit Dave/FILE PHOTO

By Swati Bhat

NEW DELHI (Reuters) - It is vital to increase quota resources for the International Monetary Fund (IMF) before year-end, its chief, Kristalina Georgieva, said on Sunday, while urging members of the G20 bloc to deliver on a promise of $100 billion a year in climate funds.

In a declaration at its summit in New Delhi this weekend, the grouping vowed to tackle debt vulnerabilities in low and middle-income countries "in an effective, comprehensive and systematic manner", but offered no fresh plan of action."G20 members must lead by example in delivering on the promises of $100 billion per year for climate finance, supported by strengthening the multilateral development banks," Georgieva said in a statement at the end of the two-day summit.

"Countries also need to mobilise domestic resources to finance and manage the green transition through tax reforms, effective and efficient public spending, strong fiscal institutions, and deep local debt markets."

She urged the grouping to strengthen the global financial safety net.

"To make the global economy stronger and more resilient in a more shock-prone world, it is vital to reach an agreement to increase the IMF's quota resources before the end of the year," she said.

Such a pact would secure resources needed for the Fund's interest-free support to the poorest countries through the Poverty Reduction and Growth Trust, she added.

© Reuters. Kristalina Georgieva, Managing Director of the International Monetary Fund, arrives to attend a G20 Finance Ministers' and Central Bank governors' meeting at Gandhinagar, India, July 18, 2023. REUTERS/Amit Dave/FILE PHOTO

The G20 summit also pledged to strengthen and reform multilateral development banks, while accepting a proposal to regulate cryptocurrencies more tightly worldwide.

"More work lies ahead, including in the realm of digital money and crypto assets," Georgieva said.

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